Work out taxable income for a CASC
Find out what income your community amateur sports club (CASC) needs to pay tax on
If your organisation is registered with HMRC as a community amateur sports club (CASC), you need to work out which part of your income to pay tax on. If you do not tell us about your taxable income on time, we can charge you a penalty.
What counts as taxable income
CASCs are treated as companies for tax purposes.
Your CASC will need to pay Corporation Tax on any income or capital gains that do not qualify for tax relief. This includes gross profits from trading over £50,000 a year .
Your CASC needs to spend all of its income and gains on ‘qualifying purposes’ or it will lose some or all of its tax reliefs and the club may get a tax bill. Qualifying purposes means providing facilities for eligible sports and encouraging people to take part in them.
If we ask you to, you must:
- complete a company tax return for your CASC
- pay any tax owed by your CASC
Trading profits
Your CASC is trading if it sells goods or services to non-members. You’ll have to pay tax on the profits if your turnover is more than £50,000.
Your CASC is not trading if it sells goods or services to voting members. For example, running a bar exclusively for members does not count as trading. Income from non-trading activities does not count towards the £50,000 limit for Corporation Tax. You do not need to pay tax on your profits from non-trading activities.
Example 1: yearly turnover below £50,000
A golf club is registered as a CASC. It makes £28,000 by charging green fees to non-members and uses the income to maintain its facilities. The club does not have to pay Corporation Tax because its yearly turnover is less than £50,000.
Example 2: yearly turnover above £50,000
A bowling club is registered as a CASC. It makes £54,000 by selling merchandise to non-members in its shop. Its yearly profit is £8,000. The club pays Corporation Tax on the £8,000 profit because its yearly turnover is more than £50,000.
If your CASC’s income from trading is more than £30,000, you must complete a tax return.
Renting property
If you rent out property and the income is more than £30,000 a year, you must pay tax on the profits.
Any income you receive from members or non-members counts towards the £30,000 limit.
Companies wholly owned by a CASC
CASCs can set up wholly-owned subsidiary companies to carry out trading activities that fall outside the tax exemptions available to them. These companies often enter into a Gift Aid arrangement with their parent CASC, under which they agree or contract to pay to the charity a sum of money equivalent to some or all of their taxable profits.
When a CASC owned company makes such a payment it may not be treated as a distribution of profit, but as a qualifying charitable donation under the company Gift Aid rules.
Non-domestic rates
CASCs are eligible for an 80% discount on non-domestic property rates.
Selling or giving away an asset
You must pay Capital Gains Tax on the proceeds from selling assets, such as buildings, unless all of the profits are used for qualifying purposes.
You could be taxed if you stop using an asset for qualifying purposes.
HMRC can deregister your CASC if you:
- transfer an asset to private ownership for free
- transfer an asset to private ownership for less than market value
- give your club’s income or assets to a member
You may also need to pay tax on the value of the club’s assets.
Property income
You may make money from renting a property that belongs to you.
If your income from property is more than £30,000 a year before allowable deductions, you must:
- complete a tax return
- tell HMRC about any profits you make
- pay any tax due
If you do not do this, you can be charged a penalty.
VAT
CASCs must follow the same VAT rules as any other business.
You must register for VAT if your CASC:
- makes taxable business supplies of goods or services
- has turnover above the VAT registration threshold
Income from fundraising events and certain sporting activities is exempt from VAT.
Paying tax
A CASC is treated as a company for tax purposes. Your CASC may need to pay Corporation Tax on any income or capital gains which do not qualify for relief. This includes any profits from trading over £50,000.
If your CASC needs to pay tax, you must:
- file a company tax return
- include form CT600E if you’re claiming relief on any income
If you do not have tax to pay, we can still ask you to complete a tax return.
If your CASC is a limited company, you must also send annual accounts to Companies House.
Exemptions and relief
If you’re a registered CASC, you can claim:
- tax back on Gift Aid donations
- relief on the Corporation Tax you pay
- non-domestic rates relief
Your CASC must spend all of its income on qualifying purposes. If it does not, the CASC:
- will lose some or all of its tax reliefs
- may get a tax bill from us
Claim tax repayment
If you’re entitled to claim a tax repayment, you need to register with HMRC to be recognised as a CASC.
You’ll need to nominate someone in your CASC to be an ‘authorised official’. For example:
- your treasurer
- an employee
- a trustee
Authorised officials can submit repayment claims and receive money on behalf of your organisation.
You can choose someone to be a ‘nominee’ like your CASC’s accountant. This is optional.
You must say who is your authorised official (and nominee if you appoint one) on your CASC application form status. If the authorised official or nominee changes, notify HMRC using form ChV1. Save the form (ChV1) on your computer and complete it on screen. Then print it, sign it and send it to the address on the form.
If you register your club as a CASC part way through an accounting period, the turnover limits for trading and property income are reduced on a pro-rata basis.
There are 3 ways for CASCs to claim tax repayments from HMRC:
- claim online using the Charities Online service
- claim online directly from your own database using third party software for more than 1,000 donors at a time
- if you don’t have access to the internet, order a paper form (called ChR1) from the Charities Helpline
Updates to this page
Last updated 10 May 2024 + show all updates
-
Incorrect amounts in the ‘What counts as taxable income’ and ‘Paying tax’ sections have been corrected.
-
Guidance amended to reflect the changes to the Community Amateur Sports Club regulations which came to effect on 1 April 2015.
-
First published.